COTTONS Chartered Accountant8 Statement of Accounts **Charity registration number 213782** **Company registration number 00013393 (England and Wales)** **THE ROYAL ASSOCIATION OF BRITISH DAIRY FARMERS ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022** ## **THE ROYAL ASSOCIATION OF BRITISH DAIRY FARMERS** ## **LEGAL AND ADMINISTRATIVE INFORMATION** **Trustees** Mr PJ Alvis Mr J Brierley Mr RK Craig Mr TJ Downes Mr LR C Edwards Mr MP King Mr JM Owen Mr GN Trehane Mrs DR Wastenage Mr WJ Westacott Mr WH Whiteford Mr WL Armitage Mrs SJ Tomlinson (Appointed 8 June 2021) Mrs KE Halton (Appointed 8 June 2021) Mrs PC Wilson (Appointed 8 June 2021) **Charity number** 213782 **Company number** 00013393 **Registered office** The Arthur Rank Centre Stoneleigh Park Stoneleigh Warwickshire CV8 2LZ **Independent examiner** Cottons Accountants LLP The Stables Church Walk Daventry Northamptonshire UK NN11 4BL ## **THE ROYAL ASSOCIATION OF BRITISH DAIRY FARMERS** ## **CONTENTS** ||**Page**| |---|---| |Trustees' report|1 - 4| |Independent examiner's report|5| |Statement of financial activities|6| |Balance sheet|7| |Statement of cash flows|8| |Notes to the financial statements|9 - 18| ## **THE ROYAL ASSOCIATION OF BRITISH DAIRY FARMERS** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ The trustees present their annual report and financial statements for the year ended 31 March 2022. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". ## **Structure, governance and management** RABDF is a charitable company limited by guarantee and does not have any share capital. The Association was incorporated under Licence of the Board of Trade on 1[st] October 1879 and registered as a charity on 5[th] December 1961 (No.213782). The company was established under Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £5. The directors of the company are also charity trustees for the purpose of charity law and under the company’s Articles known as members of the Council. Members to retire will be those that have been longest in office since their last election or appointment. All members of the Council must be active within the dairy farming Industry. RABDF Members are annually approached as to whether they are interested to stand for election onto council. Any new trustee undergoes a relevant induction process which focuses upon their role and responsibilities. The Council of Management acts as the Board of Trustees and is responsible for the overall governance of the charity. It meets at least 4 times a year in addition to the AGM. The Board requests the Chairman’s committee to meet more frequently with appropriate members of staff to ensure the efficient running of the charity. Other committees from within the Board are formed usually using a “task based” approach to carry out certain duties. Two standing committees – one on Remuneration & Audit and the other on Investments meet as and when. ## **Risk Management** This has become much more important in recent times and the Trustees have conducted their own review of the major risks to which the charity is likely to be exposed and put in appropriate systems to deal with such eventualities. ## **Objectives and activities** The Association’s charitable aims and objectives are to encourage the development of a successful, sustainable and profitable dairy farming sector in the UK. It does this by a series of relevant activities, the main one of which is the running of Dairy-Tech. RABDF are the only national dairy membership association with the freedom and capacity to lobby. We have unique and well-established relationships up and down the whole dairy supply chain and we are the only dairy organisation holding a Royal Warrant and the influence and access to funding that brings. Our short-term goal is to continue our recovery from the COVID-19 pandemic and deliver a profitable DairyTech 2023, we also intend to grow the stand and sponsorship revenue, by increasing the sellable outdoor event space contracted from the venue, this will take the form of a revised outdoor machinery area. We will be monitoring the performance and success of this short-term goal by utilising sales plans, sales targets and key performance indicators. The increased stand revenue will help further fund RABDF’s charitable aims and objectives by allowing us to allocate more resource into our policy activity. We also intend to grow our new ‘Down to Earth’ event, in terms of sponsorship, exhibitor and visitor revenue. We will be monitoring the performance and success of this short-term goal by utilising sales plans, sales targets and key performance indicators - 1 - ## **THE ROYAL ASSOCIATION OF BRITISH DAIRY FARMERS** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake. ## **Achievements and performance** RABDF, like most organization’s, has had to navigate itself through the COVID-19 Pandemic, to date, we have done this successfully as possible. Dairy-Tech 2022 date was moved from February 2022 to April 2022 due to COVID restrictions. The 2022 flagship event was delivered successfully. RABDF successfully launched a brand-new event in June 2021, Down to Earth, which focused on the basic principles of regenerative agriculture, offering an arena where the whole industry came together to address the opportunities, facts, and science surrounding its principles. At its core, regenerative agriculture looks at improving the health of soil or restoring highly degraded soil. This unique event offered RABDF members the practical advice they need to start applying its principles back on their farms. Down to Earth hosted top industry speakers, drop-in knowledge exchange hubs, practical demonstrations, carbon calculator workshops, exhibitors, and a farm tour to see regenerative farming strategies in action. RABDF has very successfully organised and run several knowledge transfer events such as a farm open day, meetings and has continued the well-established and appreciated Entrepreneurs in Dairying training programme for young people recently out of college/university who want to increase their business skills. This is a joint initiative between RABDF, AHDB, NFU and Andersons and plans are well advanced for the 2022 course to run on a similar basis. RABDF continued to be at the forefront for informing and influencing the issues surrounding the reliance of overseas labour on dairy farms. RABDF continue to inform on this key industry issue have supplied stats, facts and case studies to various governmental groups RABDF influencing activities continue with regular meetings with DEFRA, where we have informed them on topical industry issues surrounding on-farm staffing resources, TB and AMR. RABDF continues with the joint secretariat, with Dairy UK, of the All Party Parliamentary Group on Dairy, which allows issues and concerns to be raised by the Group to influential parliamentarians. RABDF have continued with its Industry Strategy Group, which has the working mandate to address any urgent issues that face UK dairy farming. This group was instrumental in launching a marketing campaign that promoted the true facts surrounding emissions coming off the UK dairy herd prior to COP26. ## **Plans for the future** We have found success in a collaborative approach and have refused to work on projects that duplicate others work. The unique work focused on overseas labour and antibiotic reduction has been well received by the whole of the dairy industry. We will continue with the successful mantra of collaborate, rather than duplicate, and inform and influence on the biggest issues affecting the industry, we also plan to extend our policy work, focusing on areas that the board of trustees see fit. We also plan to grow and develop our new event, Down to Earth. ## **Public benefit** The trustees consider they have complied with their duty to have due regard to the guidance on public benefit, as published by the Charity Commission, in exercising their powers and duties. - 2 - ## **THE ROYAL ASSOCIATION OF BRITISH DAIRY FARMERS** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **Financial review** You will have read in this report of the decision to delay Dairy-Tech 2022 from February until April. This has had a direct impact upon our reported financial performance for the year ended 31 March 2022. The DairyTech event can be expected to make a significant positive contribution to our subsidiary company Events for You Ltd and the absence of this operating profit from the event means that there was no available surplus to Gift Aid to the charity. The impact on the charity finances is that we report an operating loss for the year of £116,462 which was partly offset by a gain in the market value of our investments, resulting in a net deficit of £83,408. Although it is disappointing to report this deficit, it is largely due to timings as the event took place in April 2022 and exceeded our budget expectations. Events for You Ltd will be able to book this income in its financial year ended 31 March 2023 and with another Dairy-Tech event planned for February 2023, we anticipate that there will be a substantial surplus to Gift Aid to the charity and therefore effectively make good the losses reported this year. In view of this we view the reported financial performance as acceptable and anticipate that if we look at the 2022 and 2023 financial reporting periods together the result is expected to be an overall surplus. The reported deficit has reduced our reserves to £754,033 which have remained adequate to enable us to continue our activities pending the delayed receipt of income from this timing impact. The Trustees continue to examine the Association’s requirements for reserves. Our policy remains to maintain sufficient reserves to continue to trade and allow time for operating costs and income steams to be adjusted as we respond to any future impacts on our business. We consider that the current level of reserves and short term cash remain adequate. Our policy on Investments remains to maintain a balanced low to medium risk portfolio viewed as a ten year investment appropriate to our charitable status. That policy has seen the value of our investments increase and enables us to report the gain in value as stated. Our investment policy was reviewed by the Trustees during the year. The financial statements have been prepared on a going concern basis. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern. It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year. The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were: Mr PJ Alvis Mr J Brierley Mr RK Craig Mr TJ Downes Mr LR C Edwards Mr MP King Mr JM Owen Mr GN Trehane Mrs DR Wastenage Mr WJ Westacott Mr WH Whiteford Mr WL Armitage Mrs SJ Tomlinson Mrs KE Halton Mrs PC Wilson (Appointed 8 June 2021) (Appointed 8 June 2021) (Appointed 8 June 2021) - 3 - THE ROYAL ASSOCIATION OF BRrrisH DAIRY FARMERS TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 statement of trust••$' r•$pon¥lblliti9s The Iruslees, who are also Ihe directors of The Royal AsswatK)n Of Brib'sh D8iry Farmers for the purpose of company law. are resp)nsible for preparing Ihe Trustees. Rep(¥t and the financial slalements in accordance with applicable law and Unrted lQngdom Accountsng Slandar(Is IUnit8d Kingdom Generally Accepted Accounting Practice). Company Law requires thè trustees to prepare financial stat8mants for èach finandal year whlch give a tfue and fair viow ol the stste of affairs ol the charity and of the incoming resources and op￿Ical￿)n of resoLtTeÈ5, induding the income and gxpendilure. of the tharitable rLsmpany for Ihal year. In preparing Iheso financial stslements, thé trustees are required to.. - select suitable accounting polic￿5 then apply thern consistenuy., - obs8Ne the method¥ and principles in the ch8rib.es SORP., make ludgoments and estimates thal ore roasonabl¢ and pru¢JenL' Stale whether applirAblo UK Accounllng StandaTd$ have boen fdkwed. 8ubpct to any m*erial departuros dlsdosed and explained In the financlal stslemenls.. 8Th1 prepare the financial statemenls on the goiryj concem basis unless it Is inappropriate to presumo Ihal the chanly will continue In operation. The trustees are responsible for keeping adequale a￿O￿ntIng re￿Id$ Ihal disclose with re8son8blè accuracy at any tsme the financial posrtion of the charity and enable them to ensure Ihal the financial slalemenls comply with the Companies Act 2006. They are a150 responsi￿0 for safeguarding th8 assets of the chamty arKI hènce for taking reasonable steps lor Ihe prevenlion and dei¢ctson ol Iraud and olher irregularities. The trustees. report was approved by the 8oard ol Trusleeg. Mr J Brlgrfey Trustee Dated.. ..&.. i (! 11 rnDRW Truste• sten•g• ## **THE ROYAL ASSOCIATION OF BRITISH DAIRY FARMERS** ## **INDEPENDENT EXAMINER'S REPORT** ## **TO THE TRUSTEES OF THE ROYAL ASSOCIATION OF BRITISH DAIRY FARMERS** I report to the trustees on my examination of the financial statements of The Royal Association Of British Dairy Farmers (the charity) for the year ended 31 March 2022. ## **Responsibilities and basis of report** As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act). Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. ## **Independent examiner's statement** I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: - 1 accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or - 2 the financial statements do not accord with those records; or - 3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or - 4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached. Callum Veasey A.C.A Cottons Accountants LLP The Stables Church Walk Daventry Northamptonshire NN11 4BL UK Dated: 6 October 2022 - 5 - ## **THE ROYAL ASSOCIATION OF BRITISH DAIRY FARMERS** ## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** ## _**FOR THE YEAR ENDED 31 MARCH 2022**_ |||**Unrestricted**|Unrestricted| |---|---|---|---| |||**funds**|funds| |||**2022**|2021| ||**Notes**|**£**|**£**| |**Income and endowments from:**|||| |Donations and legacies|**2**|34,746|33,651| |Other trading activities|**4**|57,362|30,406| |Investments|**3**|14,985|15,047| |Other income|**5**|101,516|82,682| |**Total income**||208,609|161,786| |**Expenditure on:**|||| |Staff costs|**8**|244,615|226,166| |Depreciation and loss on disposal||1,697|1,835| |Insurance||1,074|1,095| |Telephone||1,993|4,740| |Postage and stationery||6,771|5,931| |Sundry expenses||3,032|187| |Premises expenses||18,174|31,080| |Membership costs||1,616|1,089| |Conference, events and awards||31,804|35,931| |Policy advisors remuneration||5,232|7,205| |Bank charges and interest||103|(11)| |Investment brokers fees||1,488|1,403| |Legal and professional fees||1,455|217| |Governance costs|**7**|6,020|3,215| |**Total charitable expenditure**||325,071|320,083| |Net gains/(losses) on investments||33,054|100,794| |**Net movement in funds**||(83,408)|(57,503)| |Fund balances at 1 April 2021||837,441|894,944| |**Fund balances at 31 March 2022**||754,033|837,441| The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. - 6 - THE ROYAL ASSOCIATION OF BRITISH DAIRY FARMERS BALANCE SHEET ASAT31 MARCH 2022 Unrnstrictsd fund$ 2022 Unr•strlthd fund$ 2021 Noles Flx¢d a¥s¢ts Tangible assets Investments 11 10 3.076 593,042 3,413 561,751 596.118 565,164 Curr•nt ass•t$ Debtors Cash al bank arKI in harKI 13 49,163 169,697 134,754 167,756 218.860 302,510 Cr•dltors'. •mounts falllng du• wtthl on• y••r 14 160,9451 130,2331 Nel current assets 157.915 272,277 Total a•••ls l•s• Current Ilabllttl•• 754,033 837,441 Income funds Vnrestricled funds 754,033 837,441 754.033 837,441 The mmpany is enlilled lo the exemption from audit requirerr*nt cC￿taIned in section 477 of the Compani8s Act 2006. lor the year ended 31 March 2022. The dlreelors acknowledge their responsibilities for eomptying wth the rèquirements of the Companies Act 2006 with respect to 8cc04Jnting re￿rdS an¢J the p￿parati¢)n of finanaal statements. The m•mb•rs have not required tho company to obtain an audlt of rts financial stalemants for lh8 year In que$llon in 8ccoré8nce with section 476. These financial Statements have been p￿￿ed in ac£0 lo th8 sm811 u)mpanies regime. an vthh Ihe provisions applicable to companies subject The financial stalements were appro¥gd by the Trustees Mr J Biiedey Truste• slena9e Company Registration No. 00013393 ## **THE ROYAL ASSOCIATION OF BRITISH DAIRY FARMERS** ## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 31 MARCH 2022**_ |**Notes**
**Cash flows from operating activities**
Cash absorbed by operations
**21**
**Investing activities**
Purchase of tangible fixed assets
Proceeds on disposal of investments
Investment income received
**Net cash generated from investing**
**activities**
**Net cash used in financing activities**
**Net increase/(decrease) in cash and cash**
**equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2022**
**£**
(1,362)
1,765
14,985|**£**
(13,447)
15,388
-
1,941
167,756
169,697|**2021**
**£**
(2,537)
1,537
15,047|**£**
(26,686)
14,047
-
(12,639)
180,395
167,756| |---|---|---|---|---| - 8 - **THE ROYAL ASSOCIATION OF BRITISH DAIRY FARMERS** ## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **1 Accounting policies** ## **Charity information** The Royal Association Of British Dairy Farmers is a private company limited by guarantee incorporated in England and Wales. The registered office is The Arthur Rank Centre, Stoneleigh Park, Stoneleigh, Warwickshire, CV8 2LZ. ## **1.1 Accounting convention** The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets. The financial statements are presented in sterling which is the functional currency of the charity. The charity has opted to report the expenditure on the basis of the nature of expenditure, rather than on an activity basis. ## **1.2 Going concern** At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements. ## **1.3 Charitable funds** Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives. ## **1.4 Income** Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. Membership subscriptions are apportioned over the period they relate to. Investment income is earned through holding assets for investment purposes such as shares. Management charges relate to amounts recharged to other entities in relation to expenses incurred on behalf of those entities. ## **1.5 Expenditure** Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. - 9 - ## **THE ROYAL ASSOCIATION OF BRITISH DAIRY FARMERS** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **1 Accounting policies** **(Continued)** ## **1.6 Tangible fixed assets** Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: Fixtures and fittings 33% on reducing balance Computers 25% on cost The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities. ## **1.7 Fixed asset investments** Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred. Other investments are measured at cost less impairment. A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities. Investments in subsidiaries are measured at cost less impairment. ## **1.8 Cash and cash equivalents** Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. ## **1.9 Financial instruments** The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. ## _**Basic financial assets**_ Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. - 10 - ## **THE ROYAL ASSOCIATION OF BRITISH DAIRY FARMERS** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **1 Accounting policies** **(Continued)** ## _**Basic financial liabilities**_ Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. ## _**Derecognition of financial liabilities**_ Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled. ## **1.10 Taxation** The charity is exempt from corporation tax on its charitable activities. ## **1.11 Employee benefits** The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits. ## **1.12 Retirement benefits** Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. ## **2 Donations and legacies** ||**Unrestricted**|Unrestricted| |---|---|---| ||**funds**|funds| ||**2022**|2021| ||**£**|£| |Membership fees|34,746|33,651| ||34,746|33,651| - 11 - ## **THE ROYAL ASSOCIATION OF BRITISH DAIRY FARMERS** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **3 Investments** |||**Unrestricted**|Unrestricted| |---|---|---|---| |||**funds**|funds| |||**2022**|2021| |||**£**|£| ||Dividends and interest earned|14,985|15,047| |**4**|**Other trading activities**||| |||**Unrestricted**|Unrestricted| |||**funds**|funds| |||**2022**|2021| |||**£**|£| ||Conferences and events|57,362|30,406| |**5**|**Other income**||| |||**Unrestricted**|Unrestricted| |||**funds**|funds| |||**2022**|2021| |||**£**|£| ||Management charges|100,716|78,582| ||Corporate - other income|800|4,100| |||101,516|82,682| ## **6 Trustees** None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year. Trustees were reimbursed travel expenses of £813 during the year (2021: £Nil). - 12 - ## **THE ROYAL ASSOCIATION OF BRITISH DAIRY FARMERS** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **7 Governance costs** |Independent Examiners' fees
Accountancy services
Council members' expenses and meeting costs
Analysed between
Charitable activities|**2022**
**£**
1,685
1,790
2,545
6,020
6,020|2021
£
1,560
1,655
-| |---|---|---| |||3,215| |||3,215| ## **8 Employees** The average monthly number of employees during the year was: |**Employment costs**
Wages and salaries
Social security costs
Other pension costs|**2022**
**Number**
7
**2022**
**£**
204,830
19,740
20,045
244,615|**2021**
**Number**
7| |---|---|---| |||**2021**
**£**
186,842
17,927
21,397| |||226,166| The key management personnel of the charity comprise the trustees and the Chief Executive Officer. The total employee benefits of the key management personnel of the charity were £80,710 (2021: £78,632). The number of employees whose annual remuneration was more than £60,000 is as follows: |is as follows:||| |---|---|---| ||**2022**|**2021**| ||**Number**|**Number**| |£70,001-£80,000|1|1| - 13 - ## **THE ROYAL ASSOCIATION OF BRITISH DAIRY FARMERS** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **9 Net gains/(losses) on investments** ||**Unrestricted**|Unrestricted| |---|---|---| ||**funds**|funds| ||**2022**|2021| ||**£**|£| |Revaluation of investments|33,054|100,794| Unrealised net fair value gains / (Losses) of £32,797 (2021: £101,779) and realised gains / (Losses) of £257 (2021: -£985) are included in the statement of financial activities as Net gains / (losses) on investments. ## **10 Fixed asset investments** |**Listed**
**investments**
**Cash in**
**portfolio**
**Other**
**investments**
**£**
**Cost or valuation**
At 1 April 2021
560,612
1,138
1
Additions
-
197
-
Disposals
(1,960)
-
-
At 31 March 2022
558,652
1,335
1
**Impairment**
At 1 April 2021
-
-
-
Revaluation adjustments
(33,054)
-
-
At 31 March 2022
(33,054)
-
-
**Carrying amount**
At 31 March 2022
591,706
1,335
1
At 31 March 2021
560,612
1,138
1|**Total**
**£**
561,751
197
(1,960)| |---|---| ||559,988| ||-
(33,054)| ||(33,054)| ||593,042| ||561,751| The fair value of all listed investments is taken to be the open market value of identical shares on an active stock market. Investment returns are exposed to various risks which include credit, liquidity and market risks. Both credit and liquidity risks are assessed as low as the charity invests in a security i which the failure rate is historically low and the investment is traded on markets in which central banks and other regulators have an interest in ensuring continuation of orderly trading. Market risk is the principle risk faced by the charity due to a combination of uncertainty in investment markets and volatility in yields. This was highlighted recently by the effect of the global Covid-19 pandemic on the financial markets which resulted in sharp reductions in both prices and dividends. The trustees manage these risks by retaining the expert services of fund managers. - 14 - ## **THE ROYAL ASSOCIATION OF BRITISH DAIRY FARMERS** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ |**10**|**Fixed asset investments**|||**(Continued)**| |---|---|---|---|---| ||||**2022**|**2021**| ||Other investments comprise:|**Notes**|**£**|**£**| ||Investments in subsidiaries|**12**|1|1| ||Listed investments included above:||**2022**|**2021**| ||||**£**|**£**| ||Listed investments carrying amount (Excluding cash)||498,470|500,138| ||Market value if different from carrying amount (Excluding cash)||591,706|560,612| |**11**|**Tangible fixed assets**|||| |||**Fixtures and**|**Computers**|**Total**| |||**fittings**||| |||**£**|**£**|**£**| ||**Cost**|||| ||At 1 April 2021|6,841|5,645|12,486| ||Additions|-|1,362|1,362| ||At 31 March 2022|6,841|7,007|13,848| ||**Depreciation and impairment**|||| ||At 1 April 2021|6,540|2,535|9,075| ||Depreciation charged in the year|100|1,597|1,697| ||At 31 March 2022|6,640|4,132|10,772| ||**Carrying amount**|||| ||At 31 March 2022|201|2,875|3,076| ||At 31 March 2021|302|3,111|3,413| - 15 - ## **THE ROYAL ASSOCIATION OF BRITISH DAIRY FARMERS** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **12 Subsidiaries** These financial statements are separate charity financial statements for The Royal Association of British Dairy Farmers. Details of the charity's subsidiaries at 31 March 2022 are as follows: |**Name of undertaking**|**Registered**|**Nature of business**|**Nature of business**||**Class of**|**% Held**| |---|---|---|---|---|---|---| ||**office**||||**shares held**|**Direct Indirect**| |Events For You Limited|The Stables,|Holding of events|||Ordinary|100.00| ||Church Walk,|||||| ||Daventry, NN11|||||| ||4BL|||||| |**Name of undertaking**|**Profit/(Loss)**||**Capital and**||**Turnover**|**Expenditure**| ||||**Reserves**|||| |||**£**|**£**||**£**|**£**| |Events For You Limited|||||35,575|(35,575)| |**Debtors**||||||| ||||||**2022**|**2021**| |**Amounts falling due within one year:**|||||**£**|**£**| |Trade debtors|||||31,185|-| |Amounts owed by fellow group undertakings|||||7,820|125,396| |Other debtors|||||2,838|3,600| |Prepayments and accrued income|||||7,320|5,758| ||||||49,163|134,754| |**Creditors: amounts falling**|**due within one**|**year**||||| ||||||**2022**|**2021**| |||||**Notes**|**£**|**£**| |Income received in advance|||||50,035|12,346| |Trade creditors|||||5,223|12,793| |Accrued expenses|||||5,687|5,094| ||||||60,945|30,233| ## **13 Debtors** ## **14 Creditors: amounts falling due within one year** ## **15 Retirement benefit schemes** ## **Defined contribution schemes** The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund. The charge to profit or loss in respect of defined contribution schemes was £20,045 (2021 - £21,397). - 16 - ## **THE ROYAL ASSOCIATION OF BRITISH DAIRY FARMERS** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **16 Unrestricted funds** These are endowment funds which are material to the charity's activities made up as follows: |||||**Movement in funds**|**Movement in funds**||||| |---|---|---|---|---|---|---|---|---|---| ||**Balance at**|**Incoming**||**Resources**|**Transfers **|**Revaluations,**|
**Balance at**||**31 March 2021**| |**1 April 2020**||**resources**||**expended**||**gains and**|||| |||||||**losses**|||| ||**£**||**£**|**£**|**£**|**£**|||**£**| |unrestricted|||||||||| |funds|894,944||161,786|(320,084)|-|100,794|||837,441| |||||**Movement in funds**|||||| ||**Balance at**|**Incoming**||**Resources**|**Transfers **|**Revaluations,**|||**Balance at**| |**1 April 2021**||**resources**||**expended**||**gains and**||**31 March 2022**|| |||||||**losses**|||| ||**£**||**£**|**£**|**£**|**£**|||| |unrestricted|||||||||| |funds|837,441||208,609|(325,071)|-|33,054|||754,033| |**Analysis of net assets between funds**|||||||||| ||||||||**Unrestricted**||Unrestricted| |||||||||**funds**|funds| |||||||||**2022**|2021| |||||||||**£**|£| |Fund balances at 31 March||2022 are represented by:|||||||| |Tangible assets||||||||3,076|3,413| |Investments|||||||593,042||561,751| |Current assets/(liabilities)|||||||157,915||272,277| ||||||||754,033||837,441| ## **17 Analysis of net assets between funds** ## **18 Operating lease commitments** At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows: |Within one year
Between two and five years|**2022**
**£**
11,064
5,346
16,410|**2021**
**£**
3,564
8,910| |---|---|---| |||12,474| - 17 - **THE ROYAL ASSOCIATION OF BRITISH DAIRY FARMERS** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **19 COVID-19** COVID-19 has had a negative impact on the current economic climate and it's significant economic impact has been considered when preparing the year end accounts. ## **20 Related party transactions** ## **Transactions with related parties** P J Alvis, J Brierley, D R Wastenage who are trustees of The Royal Association of British Dairy Farmers (RABDF) are also directors of Events For You Limited. RABDF also holds 100% of the shares in Events For You Limited. Included in management charges income is £100,716 (2021: £78,582) charged to Events For You Limited for expenses incurred on behalf of the company. Events For You Limited gifted its taxable surplus for the year of £Nil (2021: £Nil) to RABDF. ## **21** |**Cash generated from operations**
Deficit for the year
Adjustments for:
Investment income recognised in statement of financial activities
Gain on disposal of tangible fixed assets
Fair value gains and losses on investments
Depreciation and impairment of tangible fixed assets
Movements in working capital:
Decrease in debtors
(Decrease) in creditors
Increase/(decrease) in deferred income
**Cash absorbed by operations**|**2022**
**2021**
**£**
**£**
(83,408)
(57,503)
(14,985)
(15,047)
-
(2)
(33,054)
(100,794)
1,697
1,835
85,591
147,418
(6,977)
(2,052)
37,689
(541)
(13,447)
(26,686)| |---|---| - 18 - Chartered Accountants The Stables, Church Walk, Daventry, Northants NN11 4BL Telephone: (01327) 879090 Facsimile: (01327) 300829 E-mail: daventry@cottonsllp.com www.cottonsllp.com _Also at:_ **LONDON - 0203 487 1107 NORTHAMPTON - (01604) 632116 RUGBY - (01788) 579033** Cottons is the trading name of Cottons Accountants LLP a limited liability partnership Registered Number: OC355206 (England & Wales) Registered Office: The Stables, Church Walk, Daventry, Northants, NN11 4BL Registered to carry on audit work in the UK and Ireland and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales.